Ravinder Heights Limited

Real Estate — Real Estate - Development · NSE

₹38.59+₹0.45 (+1.18%)

DalalBaazaar Score

81 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Ravinder Heights Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ravinder Heights Limited engages in the real estate business in India.

IndustryReal Estate - Development

SectorReal Estate

Employees7

Annual revenue₹75 Cr

How does it make money?

Turns over ₹75 Cr a year. Of every ₹100 of sales, about ₹65 reaches shareholders as profit, with ₹92 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹10.74 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹10.74 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 22.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +524% while net margin moved +27% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+524%

Margin effect+27%

DalalBaazaar Score

81/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of 0.31 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

84/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

5.0x

3Y Median

44.5x

40 monthly readings · mean 43.1x · range 4.8x–71.6x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 89% below its 3y median of 44.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 84% below the peer median of 30.2x.

vs. its own history

Cheap

44.5x median over 40 months · -89%

vs. sector peers

Cheap

30.2x median of 3 peers · -84%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.2x

PEG

0.05

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 52.1% to 92.1% over 3 years.
Debt is being paid down
Total debt is down 50% over 3 years.
Cash generation is improving
Free cash flow is up 474% over 3 years.
Return on equity is rising
ROE has improved from 2.5% to 16.9%.
Return on capital is rising
ROCE has improved from 1.8% to 22.5%.
High return on capital employed
ROCE of 22.5% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 1013% against revenue up 524% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 52.1% to 92.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 50% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 89% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 84% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 1013% against revenue up 524%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 63% a year✓ 84.1% CAGR
Latest reported year was -89.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 90%✓ 92.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹24 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹237 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.0x

Cheap

Cheap against the generic band

P/B Ratio

0.82x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.77

Profitable

Profitable on a per-share basis

ROE

16.9%

Strong

Strong capital efficiency

ROCE

22.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

-89.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

2026.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹24 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-28171.6%

Weak

Thin margins leave little room for error

Net Margin

63.6%

Good

Strong bottom-line conversion

Current Ratio

9.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

38.4 / 40.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12 Cr	₹1 Cr	₹1 Cr	₹75 Cr	+84.1%
EBITDA	₹6 Cr	-₹2 Cr	-₹1 Cr	₹69 Cr	+122.7%
EBITDA Margin	52.1%	-247.8%	-136.9%	92.1%	—
PAT (Net Profit)	₹6 Cr	-₹2 Cr	-₹3 Cr	₹49 Cr	+99.4%
EPS	₹1.01	₹-0.35	₹-0.41	₹7.97	+99.1%
ROE	2.5%	-0.9%	-1.1%	16.9%	—
ROCE	1.8%	-0.8%	-1.3%	22.5%	—
Total Debt	₹2 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-20.6%
Free Cash Flow	₹4 Cr	-₹9 Cr	-₹8 Cr	₹24 Cr	+79.1%

🟢 Revenue has grown at 84.1% a year over 3 years.

🟢 EBITDA has grown at 122.7% a year over 3 years.

🟢 EBITDA Margin has risen from 52.1% to 92.1% over 3 years (+40.0 pts).

🟢 PAT (Net Profit) has grown at 99.4% a year over 3 years.

🟢 EPS has grown at 99.1% a year over 3 years.

🟢 ROE has risen from 2.5% to 16.9% over 3 years (+14.4 pts).

🟢 ROCE has risen from 1.8% to 22.5% over 3 years (+20.7 pts).

🟢 Total Debt has shrunk at 20.6% a year over 3 years.

🟢 Free Cash Flow has grown at 79.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹325 Cr

Total Liabilities

₹35 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

₹36 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.0%

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

6 general

Ravinder Heights Ltd is Rated Sell

MarketsMojo, 16 Oct

Is Ravinder Heights the Best Stock in Its Sector? A Look at the Numbers

Univest, 06 Oct

Ravinder Heights approves FY26 financials, Radhika Jain re-appointed

scanx.trade, 28 Sept

Ravinder Heights Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Compare with

Equitymaster, 09 Oct

Ravinder Heights RVHL Trading Window Closure October 2026

Kalkine India, 25 Sept

Watch Items

Revenue growth is negative (-89.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑